Covid-19 fueled a surge of new businesses, but the trend is evolving - Phoenix Business Journal

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The pandemic-fueled surge in new businesses is still ongoing, but it did lose some steam

The surge of new businesses that started with the Covid-19 pandemic may have lost a little steam from its peak in 2022, but entrepreneurs continue to launch new businesses at numbers not seen prior to 2020.

"In spite of recessionary fears and labor market uncertainties, many Americans still believe the time is right to start a business,” said Gusto Economist Luke Pardue. “This new crop of young businesses looks quite different from prior years because who is starting these firms, where they are created, and what they look like continues to evolve, expanding opportunity to more people and places.

. The Midwest and Northeast saw a corresponding fall in business applications over the same time last year.

 

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